A governance structure is the system which governs the relationships among a firm’s managers, shareholders, employees, customers and suppliers, playing an important role in providing both incentives and controls of managerial behavior (Tran, 1998). It can be defined as ‘an institutional framework in which the integrity of a transaction, or related set of transactions, is decided’ (Williamson, 1996). The efficiency of a governance structure, that […]

Introduction The Health South Corporation is a public company based in Birmingham City of Alabama, and at the moment, enjoys the status of one of the US’ largest dealers in the business of health care services provision. Presently, the Health South Corporation remains renowned for the rehabilitation services. Similarly, the health care services company has under its possession, over 200 facilities in America and Puerto […]

The rise and fall of the Royal Bank of Scotland is characterized by poor corporate governance which allowed for the complete dominance of the executive management over the board of directors and a massive principal-agent problem. Positive social dynamics and the power of weak ties allowed for compliance while intimidation and bullying tactics silenced questions, concerns and opposition. The board’s utter compliancy and borderline negligence […]

TITLE : CORPORATE GOVERNANCE COMPANY NAME : AIR ASIA GROUP MEMBER AIRASIA BERHAD COMPANY PROFILE ? Established in 1993 and commence operations on 18 November 1996. ? Established with the dream of making flying possible for everyone ? Originally founded by a government-owned conglomerate, DRB-COM. ? Bought by former Time Warner executive, Tony Fernandes ‘s company Tune Air Sdn Bhd on 02 Dec 2001 COMPANY […]

The great Indian master of Political Science Kautilya mentioned four functions of a king in his well-known book Arthashastra -1. Raksha or protection, 2. Vriddhi or enhancement, 3. Palana or maintenance, and 4. Yogakshema or wellbeing or safeguard. It is the sacred duty of the state to protect the person and property of its subject to enhance their wealth, to maintain them and to safeguard […]

Week 2 Essay Questions (100 Points) 1. Do you feel the extent of shareholders’ participation in the election of directors is limited to the rubber-stamp process of affirmation? Explain the given statement. Actually, shareholders have limited power during the election process even though they are empowered by the statues to elect directors to oversee management. Even if the majority of shareholders oppose a corporate sponsored […]